Airlangga: Indonesia's Economy Remains Solid Entering The Second Year Of Prabowo's Government

Coordinating Minister for Economic Affairs Airlangga Hartarto said the Indonesian economy showed solid resilience entering the second year of President Prabowo Subianto's administration.

"The government has been running for one year, and thank God the economy is still in a good situation. Our economic growth is 5 percent for seven years, meaning that Indonesia has grown 35 percent in seven years amid global uncertainty and various crises that we have gone through, including tariff wars," Airlangga said in his statement, quoted on Sunday, November 30.

Airlangga explained that various global economic pressures throughout 2025 have been widely anticipated by the Government.

He added that macro stability is maintained, as reflected in improving consumer confidence, manufacturing PMI at an expansive level, as well as strengthening financial markets.

According to him, the exchange rate and inflation are also in a controlled range, while investment realization reaches more than IDR 1,400 trillion with a target of IDR 1,900 trillion by the end of the year.

"Various factors of uncertainty have been prioritized this year. We have passed the heavy headwind. Therefore, the outlook for 2026 is more optimistic, and we hope that growth is above 5.4 percent. There is no risk that is as heavy as the war of Ukraine, Gaza, COVID-19, or tariff wars, everything has been exceeded by Indonesia," he said.

Airlangga also explained about strengthening Indonesia's economic diplomacy, including the 19 percent tariff agreement with the United States, the CPTPP access process, Indonesia's full membership in BRICS+, and significant progress in the OECD accession process.

Airlangga also highlighted the digital transformation agenda through the ASEAN Digital Economy Framework Agreement (DEFA), expansion of Local Currency Transactions, and interoperability of cross-border QRIS.

In addition, he conveyed that the Government emphasized the importance of accelerating structural reforms through deregulation and ease of licensing.

Airlangga said the service level agreement mechanism had been implemented in the licensing process, while the Government Strategic Program Acceleration Task Force (P2SP) was continuously strengthened to overcome the cross-ministerial bottleneck.

According to him, the Government is also paying attention to the green energy agenda, including the development of Green Super Grid, Carbon Capture and Storage (CCS/CCUS), and the expansion of village-based PLTS.

Airlangga emphasized that the Government continues to strengthen cross-sectoral coordination and encourage policy reform to increase national competitiveness, while ensuring that the economic transformation agenda runs effectively and provides broad benefits for the business world.